TGS ASA and PGS ASA have announced their plans to merge and create a comprehensive energy data company, according to a joint statement. The merger is expected to be completed as a statutory merger under Norwegian corporate law, with PGS shareholders receiving 0.06829 ordinary shares of TGS for each PGS share. After the merger, TGS and PGS shareholders will own approximately two-thirds and one-third of the combined company, respectively.
The combined company will have a net interest-bearing debt of $649 million and a fully diluted market cap of approximately $2.616 billion. It plans to refinance PGS’ $450 million senior notes and term loans. The merger is supported by the board of directors of both companies and is subject to confirmatory due diligence, executing a definitive merger plan, regulatory approvals, and approval by extraordinary general meetings.
The merger will create a full-service geophysical data company with a strong offering in all segments, including multi-client data, streamer data acquisition, ocean bottom node (OBN) data acquisition, imaging, and new energy data. The combined company will have a global seismic library with data from active basins in both hemispheres. It will also be a major player in data acquisition, with an operational fleet of seven 3D data acquisition vessels for streamer acquisition and access to around 30,000 mid and deepwater nodes for OBN acquisition.
The merger is seen as a major milestone for TGS in its journey to become a leading provider of geophysical data to the oil and gas and new energy industries. The consolidation of resources from TGS and PGS will generate significant value for stakeholders and enhance service quality for clients.
Title: TGS and PGS to Merge and Create Strong Energy Data Company
Source: TGS ASA, PGS ASA
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